The document defines various terms related to financial trading. Some key terms include: - Margin - Funds provided by a broker to cover losses from trading with leverage. Margin Level is the ratio of equity to margin. - Position - The buy or sell side of a trade. A position is opened by entering a trade and closed by exiting the trade. - Leverage - The ratio of funds provided by the broker compared to the total trade size, allowing traders to control larger positions with less capital. - Pip - The smallest price change in a currency pair quote or contract. Pips are used to measure profit and loss.

1. Glossary
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Abnormal market conditions – the market condition meeting each of the following characteristics:
 presence of significant interruptions of quotation flow coming to the trading platform;
 presence of rapid price volatility;
 presence of substantial price gaps.
Archive – status assigned to a trading account, in case of absence of activity on it during the period of 90 (ninety) calendar days.
Ask – a market price provided by the quotation provider, at which a financial instrument can be bought.
Balance – amount on a trading account in case no opened positions are present
Base currency – the first currency in a currency pair
Bid – a market price provided by the quotation provider, at which a financial instrument can be sold.
Candle – chart element comprising open and close prices, as well as maximum and minimum prices of a certain period (for instance, 4 hours).
Chart – quotation flow represented in a graphic format maximum point (high) of any bar/candle is a maximum Bid price during a period;
minimum (low) is minimal Bid price; Close price is the last Bid of a bar/candle; Open price is the first Bid of a bar/candle.
Claim – a message from the Client to MFX Broker Inc. comprising a request to analyze a disputable situation.
Client – an individual or legal entity that has accepted conditions of the Client agreement.
Client’s log‐file – the file created by the client terminal recording all Client’s requests and orders within accuracy of a second.
Client terminal – software provided by MFX Broker Inc., by virtue of which the Client can receive real time data on financial markets status (in
volume, defined by the Company). With the help of the client terminal the Client has an opportunity to perform technical analysis of financial
markets, to give orders to conduct trading transactions with financial instruments on international financial markets, to place/modify/delete
orders, as well as to receive messages from the Company.
Client terminal timing – time zone, in terms of which any events are registered in the server’s log file (GMT+3).
Closed position – result of the second part of Complete trading operation
Commission – the fee charged by the Company from its Clients for brokerage services provision.
Complete trading operation – it comprises the initial position opening (buy or sell) and consequent closing (selling of an instrument that was
bought before, or purchase of the one that was sold).
Contract for difference (CFD) ‐ derivative financial instrument allowing obtaining profit from both increase and decrease of an underlying
instrument’s price without transfer of ownership.
Contract size – product of position volume and a current financial instrument’s price.
Contract specification ‐ main trading conditions (spread, lot size, minimum transaction volume, minimum transaction volume change size,
initial margin, lock position margin, etc.) for each instrument.
Credit – a sum of credit deposit/write off operations, conducted on a Client’s trading account.
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Currency pair – object of a trading operation based on fluctuation of exchange rate between two currencies.
Current price – price of a base currency unit in terms of quoted currency (in case of a currency pair) or price of a basic asset unit denoted in
monetary form (in case of contracts for difference).
Delayed quote – situation when the quote that is present on the server and/or in the client terminal doesn’t coincide with real market price,
currently existing at the moment of order execution.
ECN (Electronic Communication Network) – electronic system designed for conducting Buy/Sell transactions with financial instruments as
transaction objects.
Equity – current condition of a trading account. It is intended for maintaining Client’s opened positions.
Expert advisor – trading account management algorithm in the form of software module created using specific programming language, used to
send requests and orders to the server via client terminal.
Fast market – market condition characterized by rapid financial instrument’s price fluctuation during a short time period. Frequently
accompanied by price gaps. Generally, it occurs right before and/or right after important economic indexes publication.
Financial instrument – any instrument available for a trade conduction. It is displayed in the Market watch window of the Client terminal.
Financial obligations – funds due to be paid by one side of a contract to another one. It is reflected on balance of client's trading
account/personal wallet.
Financial transaction – operation of deposit/withdrawal of funds from a trading account and/or personal wallet. These transactions also
include internal transfers, charging/writing off of bonus amounts and provision/return of Credit.
Floating profit/loss ‐ unrecorded profit/loss of all opened positions, calculated at the current financial instruments’ prices.
Force‐majeure – includes (but is not limited by) natural disasters, strikes, mass disorders, civil strives, terrorist attacks, wars, riots, labor
disputes, accidents, actions of government, power supply and communication failures, hacker attacks, hardware or software faults.
Free margin (trading account free margin) – funds on a Client’s trading account, which can be used for new positions opening.
Freeze level – order level that is very close to the current market price. In case such level is reached, modification, deletion or closing of
positions that are about to be executed is forbidden.
Gap (price gap) – situation, when the difference between two Bid prices (represented by two closest candles on a chart) exceeds spread for a
financial instrument in question.
Identification documents – documents proving the Client’s identity (for instance, passport or ID‐card)
Indicative prices – quotes, at which the Client can conduct a trading operation for a financial instrument, provided without any firm obligation
to conduct a trade at such prices.
Initial margin – monetary pledge required for a position opening
Instant quotes – request‐free quotes provision mechanism allowing the Client to see the real‐time flow of quotes provided by the Company,
with which he/she can make an order to conduct a trading operation at any time.
Instruction – a command from the Client to the Company for position opening/closing, placement, deletion or modification of order level.
Leverage – the correlation between margin amount and trade volume. For instance, leverage 1:500 means that in order to conduct a trading
operation it is necessary to have an amount that is 500 times smaller than transaction volume on a trading account.
Limit & Stop level ‐ a price range (in points) from the current market price, within which Stop loss, Take profit and other pending orders cannot
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be set If you try to set a pending order inside the price range, the server will return the ”Invalid stops” message and will not accept the order.
Locked position – long and short position of the same volume, opened for the same financial instrument on a trading account.
Locked position margin – a pledge for opening and maintaining locked positions required by the Company.
Long position – purchasing of a financial instrument with an eye to its exchange rate increase. In terms of currency pairs: purchase of a base
currency for a quoted currency.
Lot – standard financial instrument volume measure conventionally used in trading platform
Lot size – quantity of shares, commodities, base currency in one lot defined in the contract specification
Margin call – condition of a trading account, under which the broker has a right, but is not obliged to close all opened Client’s positions due to
free margin insufficiency.
Margin Level – ratio between Equity and Margin multiplied by 100%
Margin trade – a transaction comprising purchase/selling of financial instruments with payments being settled using money or securities
provided by the Company to the Client as a loan.
Margin trading – conduction of trades using leverage, by virtue of which the Client has an opportunity to conduct transactions of a volume
significantly exceeding his/her own capital.
Market opening – resuming of trading after weekend, holidays of after a pause between trading sessions.
Necessary margin – monetary pledge required by the Company for maintaining positions opened.
Non‐market price – a quote meeting any of the following conditions:
 a significant price gap is present (the significance is determined by the Company at it’s own discretion);
 during a short time period price returns to the initial level, thus generating a gap;
 absence of dynamic price volatility before the emergence of such a quote;
 the presence of lag in the quotation flow (delayed quote);
 absence of macroeconomic events and/or corporate news significantly affecting an instrument’s exchange rate at the moment of the quote’s
emergence.
Normal market conditions – the market condition meeting each of the following characteristics:
 absence of significant interruptions of quotation flow coming to the trading platform
 absence of rapid price volatility
 absence of substantial price gaps
Opened position – result of the first part of Complete trading operation.
Opposite trade – the situation involving two oppositely directed trades for the same financial instrument being opened on one trading
account.
Order ‐ a Client’s command to open or close a position
Order level – a price set in an order
Partial closing – partial closing of a position opened for a financial instrument
Payment details certification – a procedure comprising the Client’s payment details (electronic payment systems accounts) being verified by
the Company.
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Pending order – a command given by the Client to the Company to open a position, when price reaches an order level.
Personal cabinet – secure section of MFX Broker Inc. web‐resource, which is accessed by the Client using password. Personal cabinet is
designed for:
 new trading accounts opening;
 receiving information from the Company addressed directly to the Client;
 conducting new balance transactions and browsing old ones;
 making requests for balance operations;
 receiving bonuses or participation in competitions organized by the Company.
Personal data – any Client’s information required by MFX Broker Inc.
Personal data certification (certification of user) – the procedure of Client’s personal data verification. The user’s personal data certification
procedure must be completed by the Client not later than 10 (ten) calendar days after the Personal cabinet registration.
Personal wallet – Client’s personal account in MFX Broker Inc.
Personal wallet free margin – Personal cabinet balance excluding all non‐withdrawable bonuses
Point (pips) – minimum possible financial instrument price change
Price preceding nom‐market price – the last market (real) price, received right before a non‐market quote.
Quote – financial instrument unit’s price, defined by correlation between supply and demand for it.
Quoted currency – the second currency in a currency pair
Request (price request) – Client’s action aimed on provision of the current financial instrument’s quotation. The request cannot be considered
the Client’s obligation to conduct a transaction.
Trailing Stop Level – Trailing stop level defined by the Client
Trading counterpart – another (not Client) party in the frame of the trading operation
Server – software product, by virtue of which client’s orders and requests are processed, information on financial markets status is provided to
the Client in real‐time (in volume defined by the Company), mutual obligations between the Client and the Company are settled, and financial
transactions are conducted via personal cabinet.
Server’s log‐file – the file created by the server, recording all requests and orders received from the Client, as well as processing results, within
accuracy of a second.
Services of the Company – any interactive software and other services offered by the Company, which allow the Client:
 to contact the Company;
 to receive information and quotes from the Company or the third party authorized as a service provider;
 to give the Company orders to conduct trading operations with financial instruments on international financial markets via the client
terminal. The client terminal performs electronic communication of data transferred by the Client to the Company via specialized software.
Short position – selling of a financial instrument with an eye to its exchange rate decrease. In terms of currency pairs: selling of a base currency
for a quoted currency.
Slippage – execution of the Client’s order at a price different from the one set as an order level.
Spread – difference between Ask and Bid prices in terms of points
Stop out – forced closing of Client’s opened positions without any preliminary notification of the latter.
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Storage (Swap) – operation involving settlement date of an opened position (position transfer) being transferred to the next working day with
swap‐points being charged. In the night between Wednesday and Thursday triple swap‐point value is being charged.
Swap‐free (Islamic trading accounts) – service provided by MFX Broker Inc. that involves the Client’s trading account being freed from swap
charge for position transfer over midnight (Client terminal time).
Thin market – the market condition, under which during a long time period quotes are coming to the trading terminal less often, than under
normal market conditions.
Ticker – abbreviated designation of a financial instrument
Ticket – a unique id number assigned to each opened position or pending order in the trading terminal.
Trade (trading operation) – financial instrument purchase/selling operation conducted by the Client
Trading account – Client’s personalized account recording all complete and current trading operations, financial transactions, as well as
pending orders and bonuses.
Trading operation register – history of trading operations conducted by the Client during whole trading period.
Trading session – work hours of foreign exchange and commodity markets located in different geographic zones
Trading strategy – trading rules, by the guidance of which a trader conducts trading operations on international financial markets. The strategy
defines trader’s behavior while he/she is on market.
Trailing stop – the following algorithm of Stop Loss order management:
 in case profit of an opened position doesn’t exceed a Trailing Stop level, do not take any actions;
 when floating profit of an opened position exceeds a Trailing Stop value, the order should be sent to the server to set a Stop Loss order in the
distance equal to a Trailing Stop value from the current price;
 as the Client terminal receives a quote, with a distance from it to the set Stop Loss exceeding Trailing Stop value, the order should be sent to
the server to change the order level, thus it is set in the distance from the current price equal to the Trailing Stop level. Trailing Stop works
only under the condition that the client terminal is running, is connected to the Internet, and is successfully authorized on the server.
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